1998 (12) TMI 638 - HC - Indian Laws

Summary

Issues Involved:
1. Calculation of compensation under the Workmen's Compensation Act.
2. Scope of the Insurance Company's defense under Section 149(2) of the Motor Vehicles Act, 1988.
3. Applicability of the amended provisions of the Workmen's Compensation Act, 1995.

Issue-wise Detailed Analysis:

1. Calculation of Compensation under the Workmen's Compensation Act:
The Tribunal accepted the claimant's monthly salary as Rs. 2,300/- but deemed it to be Rs. 2,000/- for compensation calculation under Section 4 of the Workmen's Compensation Act, as amended by the 1995 Act. The Tribunal awarded Rs. 2,54,148/- with 12% interest based on this deemed wage. The appellant contended that the amendment, effective from 15th September 1995, should not apply retrospectively to an accident that occurred on 22-2-1995, arguing that the compensation should be calculated based on the pre-amendment figure of Rs. 1,000/-.

2. Scope of the Insurance Company's Defense under Section 149(2) of the Motor Vehicles Act, 1988:
The respondent's counsel raised a preliminary objection, arguing that the Insurance Company's defense is limited by Section 149(2) of the Motor Vehicles Act, 1988, which restricts the defenses available to the insurer. The court upheld this objection, stating that the insurer cannot challenge the quantum of compensation as it falls outside the defenses specified under Section 149(2). The court cited precedents from the Allahabad High Court and previous decisions of the Karnataka High Court to support this interpretation, emphasizing that the insurer's right to appeal is circumscribed by the defenses available under the Motor Vehicles Act.

3. Applicability of the Amended Provisions of the Workmen's Compensation Act, 1995:
The court examined whether the amendment to Section 4 of the Workmen's Compensation Act, which increased the deemed monthly wage from Rs. 1,000/- to Rs. 2,000/-, should apply to the case. The court concluded that the amendment, being procedural, applies retrospectively to pending cases. It cited various legal principles and precedents, including the Supreme Court's decision in New India Assurance Company Limited v V.K. Neelakandan and Others, which held that benefits conferred by amendments should be extended to workmen if available at the time of final adjudication. The court also referenced the Kerala High Court's similar interpretation and dismissed the appellant's reliance on contrary judgments, affirming that the amended provisions were correctly applied by the Workmen's Compensation Commissioner.

Conclusion:
The appeal was dismissed with costs to the respondent, affirming the Tribunal's award of Rs. 2,54,148/- with 12% interest. The court directed that the deposited amount be sent to the Workmen's Compensation Commissioner for payment to the claimant.